Re-melting scrap classification turns on commercial understanding, not price circulars, and remains dutiable under Item 26.

Scrap generated in manufacturing and later melted for reuse as iron ingots was classified by its commercial and ordinary meaning, not by size or price-control circulars. Item 26 covered steel ingots, including steel melting scrap, while Item 26AA covered iron or steel products such as semi-finished steel. Scrap that is used only for remelting and serves no other purpose answers the description of re-melting scrap, even if it is cut from larger products. On that basis, the scrap was held dutiable under Item 26 and not under Item 26AA, and the Revenue's classification was upheld.

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Issues: Whether scrap obtained in the course of manufacture of iron and steel products and thereafter melted and reused as iron ingots was dutiable under Item 26 or Item 26AA of the Tariff Schedule.

Analysis: Item 26 covered steel ingots including steel melting scrap, while Item 26AA covered iron or steel products such as semi-finished steel. The decisive test was the commercial and ordinary understanding of the goods. Scrap, even if capable of being re-melted, does not become semi-finished steel merely because it is cut from larger products or classified differently for price control purposes. The size of scrap and price circulars issued by the Controller of Iron and Steel could not determine excise classification under the tariff. Scrap that is used only for melting and cannot serve any other purpose answers the description of re-melting scrap.

Conclusion: The scrap cleared by the appellant, having been melted and reused as iron ingots, was re-melting scrap dutiable under Item 26 and not under Item 26AA; the classification adopted by the Revenue was upheld.

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